U.S. Export Controls Over Cloud Computing: The Forecast Calls for Change

By: Ryan M. Murphy

Introduction:  Are you violating United States export law when you click “save” on that document? Exactly where does that file go? For some, it may travel to a server within their company’s building, but for an increasing population, that file goes “into the clouds” and out of the country. If you use a service provider to host e-mail or store data, it’s important to understand the type of data you are storing and where that information is located. Many cloud providers utilize a vast array of servers, referred to commonly as “clouds”, located all over the world.  These servers are connected and work together to provide a seamless hosting environment for users.  A significant export control issue arises when the data stored on a cloud falls within the type regulated by the Export Administration Regulations (“EAR”), and it’s sent to a server in another country. If so, you may have just unknowingly exported your data and become subject to government regulation.

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